Insteel Industries Inc (IIIN)
Return on equity (ROE)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 19,305 | 32,415 | 125,011 | 66,610 | 19,009 |
| Total stockholders’ equity | US$ in thousands | 350,855 | 381,505 | 389,744 | 302,038 | 264,803 |
| ROE | 5.50% | 8.50% | 32.08% | 22.05% | 7.18% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $19,305K ÷ $350,855K
= 5.50%
Insteel Industries Inc's return on equity (ROE) has shown varying levels over the past five years, ranging from 5.50% to 32.08%.
In 2024, the ROE decreased to 5.50%, indicating a lower return on equity compared to the previous year. This decline may raise concerns about the company's profitability and efficiency in generating returns for its shareholders.
The ROE was at its highest in 2022 at 32.08%, indicating strong profitability and efficient use of shareholders' equity during that period. A high ROE suggests that the company was able to generate a significant return on the shareholders' investments.
The significant drop in ROE from 2022 to 2023, followed by fluctuations in subsequent years, suggests that Insteel Industries Inc's performance in utilizing equity to generate profits has been inconsistent.
Overall, a low ROE in 2024 relative to previous years may require further examination to identify any underlying issues affecting the company's profitability and efficiency in utilizing shareholders' equity.
Peer comparison
Sep 30, 2024